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NTPC 2020-21 Annual Report Analysis
Wed, 31 Mar

NTPC has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

NTPC Income Statement Analysis

  • Operating income during the year rose 1.5% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 2.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 29.5% in FY21 as against 29.3% in FY20.
  • Depreciation charges increased by 20.2% and finance costs increased by 17.9% YoY, respectively.
  • Other income declined by 16.2% YoY.
  • Net profit for the year grew by 24.3% YoY.
  • Net profit margins during the year grew from 10.7% in FY20 to 13.1% in FY21.

NTPC Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 1,075,592 1,092,052 1.5%
Other income Rs m 78,534 65,819 -16.2%
Total Revenues Rs m 1,154,126 1,157,871 0.3%
Gross profit Rs m 315,359 322,298 2.2%
Depreciation Rs m 103,562 124,503 20.2%
Interest Rs m 81,890 96,553 17.9%
Profit before tax Rs m 208,441 167,061 -19.9%
Tax Rs m 93,475 24,205 -74.1%
Profit after tax Rs m 114,966 142,855 24.3%
Gross profit margin % 29.3 29.5
Effective tax rate % 44.8 14.5
Net profit margin % 10.7 13.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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NTPC Balance Sheet Analysis

  • The company's current liabilities during FY21 stood at Rs 733 billion as compared to Rs 675 billion in FY20, thereby witnessing an increase of 8.7%.
  • Long-term debt stood at Rs 1,813 billion as compared to Rs 1,760 billion during FY20, a growth of 3.0%.
  • Current assets rose 4% and stood at Rs 684 billion, while fixed assets rose 5% and stood at Rs 3,389 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 4,093 billion as against Rs 3,905 billion during FY20, thereby witnessing a growth of 5%.

NTPC Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 1,188,392 1,257,385 5.8
 
Current Liabilities Rs m 674,850 733,362 8.7
Long-term Debt Rs m 1,760,200 1,812,719 3.0
Total Liabilities Rs m 3,904,581 4,092,890 4.8
 
Current assets Rs m 659,610 683,705 3.7
Fixed Assets Rs m 3,219,284 3,388,886 5.3
Total Assets Rs m 3,904,581 4,092,890 4.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



NTPC Cash Flow Statement Analysis

  • NTPC's cash flow from operating activities (CFO) during FY21 stood at Rs 324 billion, an improvement of 35.8% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -210 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -110 billion on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 4 billion from the Rs 3 billion net cash flows seen during FY20.

NTPC Cash Flow Statement 2020-21

Particulars No. of months 12 12 % Change
Year Ending Mar-20 Mar-21
Cash Flow from Operating Activities Rs m 238,897 324,441 35.8%
Cash Flow from Investing Activities Rs m -296,281 -210,345 -
Cash Flow from Financing Activities Rs m 60,043 -110,491 -
Net Cash Flow Rs m 2,658 3,605 35.6%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for NTPC

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 14.7, an improvement from the EPS of Rs 11.6 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 106.5, stands at 8.3 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 0.8 times, while the price to sales ratio stands at 0.9 times.
  • The company's price to cash flow (P/CF) ratio stood at 3.5 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-20* 12 Mar-21*
Sales per share (Unadj.) Rs 108.7 112.6
TTM Earnings per share Rs 11.6 14.7
Diluted earnings per share Rs 11.9 14.7
Price to Cash Flow x 3.7 3.5
TTM P/E ratio x 12.9 8.3
Price / Book Value ratio x 0.9 0.7
Market Cap Rs m 1,087,907 935,001
Dividends per share (Unadj.) Rs 3.2 6.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for NTPC

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 0.9x during FY21, from 1.0x during FY20. The current ratio measures the company's ability to pay short-term and long-term obligations.

    Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at 2.7x during FY21, from 3.5x during FY20. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

  • Profitability Ratios
  • Return on Equity (ROE): The ROE for the company improved and stood at 11.4% during FY21, from 9.7% during FY21. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

    Return on Capital Employed (ROCE): The ROCE for the company declined and down at 8.6% during FY21, from 9.8% during FY20. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

    Return on Assets (ROA): The ROA of the company improved and stood at 5.8% during FY21, from 5.0% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-20* 12 Mar-21*
Current ratio x 1.0 0.9
Debtors’ Days Days 7 6
Interest coverage x 3.5 2.7
Debt to equity ratio x 1.5 1.4
Return on assets % 5.0 5.8
Return on equity % 9.7 11.4
Return on capital employed % 9.8 8.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how NTPC has performed over the last 5 years, please visit here.

NTPC Share Price Performance

Over the last one year, NTPC share price has moved up from Rs 84.2 to Rs 106.5, registering a gain of Rs 22.3 or around 26.4%.

Meanwhile, the S&P BSE POWER Index is trading at Rs 2,475.1 (down 1.4%). Over the last one year it has moved up from 1,378.0 to 2,475.1, a gain of 1,097 points (up 79.6%).

Overall, the S&P BSE SENSEX is up 74.1% over the year.

(To know more, check out historical annual results for NTPC and quarterly results for NTPC)

Annual Report FAQs

What is the current share price of NTPC?

NTPC currently trades at Rs 159.8 per share. You can check out the latest share price performance of NTPC here...

What was the revenue of NTPC in FY21? How does it compare to earlier years?

The revenues of NTPC stood at Rs 1,157,871 m in FY21, which was up 0.3% compared to Rs 1,154,126 m reported in FY20.

NTPC's revenue has grown from Rs 821,563 m in FY17 to Rs 1,157,871 m in FY21.

Over the past 5 years, the revenue of NTPC has grown at a CAGR of 9.0%.

What was the net profit of NTPC in FY21? How does it compare to earlier years?

The net profit of NTPC stood at Rs 142,855 m in FY21, which was up 24.3% compared to Rs 114,966 m reported in FY20.

This compares to a net profit of Rs 133,623 m in FY19 and a net profit of Rs 100,565 m in FY18.

Over the past 5 years, NTPC net profit has grown at a CAGR of 9.1%.

What does the cash flow statement of NTPC reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of NTPC reveals:

  • Cash flow from operations increased in FY21 and stood at Rs 324,441 m as compared to Rs 238,897 m in FY20.
  • Cash flow from investments increased in FY21 and stood at Rs -210,345 m as compared to Rs -296,281 m in FY20.
  • Cash flow from financial activity decreased in FY21 and stood at Rs -110,491 m as compared to Rs 60,043 m in FY20.

Here's the cash flow statement of NTPC for the past 5 years.

(Rs m)FY17FY18FY19FY20FY21
From Operations201,666196,696186,857238,897324,441
From Investments-244,801-206,781-240,633-296,281-210,345
From Financial Activity31,38010,27849,26860,043-110,491
Net Cashflow-11,756193-4,5092,6583,605

What does the Key Ratio analysis of NTPC reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of NTPC reveals:

  • Operating profit margins witnessed a fall and down at 29.5% in FY21 as against 29.3% in FY20.
  • Net profit margins grew from 10.7% in FY20 to 13.1% in FY21.
  • Debt to Equity ratio for FY21 stood at 1.4 as compared to 1.5 in FY20.

Here's the ratio/financial analysis of NTPC for the past 5 years.

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)26.425.922.829.329.5
Net Profit Margin (%)12.511.713.610.713.1
Debt to Equity Ratio (x)1.11.11.31.51.4

Read: Latest Annual Report Analysis of NTPC

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